This archive report was first published on 18 November 2019.
Published on November 18, 2019, by Ouma Wanzala, more by this author here.
The Higher Education Loans Board (Helb) in Kenya is taking a tough stance against student loan defaulters. With outstanding loans totaling Ksh50 billion ($500 million), the board plans to name and shame some 85,000 defaulters if they do not repay their loans.
According to a statement issued by Helb, defaulters will have 30 days to come forward and explain how they will repay the loans. Failure to do so will result in the publication of their names and photos, paving the way for legal action.
Helb requires the cash to support other poor Kenyans in realizing their dream of acquiring degrees and diplomas. The board has asked beneficiaries who are not servicing their loans to get in touch with it for particulars of their loan account.
Notably, Helb recovered more than Ksh500 million ($5 million) last year following a two-month amnesty issued by the government. However, the board still cannot trace 17,000 defaulters, while 85,000 loan defaulters were owing the agency by last year.
Since 1974, the university loan scheme has supported over 645,000 Kenyans to pursue higher education at a total cost of Ksh72 billion ($720 million). A total of 169,909 graduates had fully repaid their loans worth Ksh13.2 billion ($132 million) by September 2017, while some 136,783 beneficiaries were servicing loans worth Ksh20.7 billion ($207 million).
